McKowen v. Gulf States Utilities Co.
McKowen v. Gulf States Utilities Co.
Opinion of the Court
Relators, Gulf States Utilities Company and American Home Insurance Company,
The appellate courts of Louisiana have the authority and duty to determine whether what purports to be a bond is in fact a bond. Guilliot v. City of Kenner, 326 So.2d 359 (La. 1976).
It is argued by respondents that the failure of the surety bond issued by New Hampshire Insurance Company, as surety, to Gulf States Utilities Company and American Home Insurance Company, as principal, to be countersigned by an agent of New Hampshire Insurance Company who is also a Louisiana resident renders the bond invalid under the provisions of LSA-R.S. 22:1171 which in part provides:
“All policies of insurance, including powers of attorney attached to bail bonds, for or on behalf of any insurer, covering any property, or insurable interests, or business activities, located within, or transacted within this state shall be signed or countersigned by an agent licensed under this part who is a resident of this state and who is compensated on a commission basis.”
We do not agree. LSA-R.S. 22:1171 had its origin with Act 348 of 1938, Regular Session. Section 4 of Act 348 provided “that no insurance contract herein referred to shall be valid in Louisiana except when signed in Louisiana by a Resident Agent, or by a representative or attorney-in-fact as provided in the above section.” When the insurance laws of Louisiana were codified into the Insurance Code
Therefore, for the above and foregoing reasons the writ issued by this Court is made preemptory. This matter is now remanded to the Trial Court for the purpose of allowing the Trial Judge to recall and vacate his order. All costs of this proceeding before this Court are taxed to respondent.
WRIT MADE PREEMPTORY.
. LSA-R.S. 22:1, et seq.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.